ED Takes Action in ₹500 Crore Crypto Scam, Seizes ₹72 Lakh
The Enforcement Directorate has launched a crackdown on a major crypto scam, seizing assets and arresting key suspects involved.
Shimla, October 31 (Daily Kiran) : The Enforcement Directorate (ED) has intensified its investigation into a ₹500 crore cryptocurrency scam linked to Korvio Coin (KRO), conducting raids in Chandigarh, Mohali, and Zirakpur. On October 31, officials reported the seizure of property documents and ₹72 lakh during these operations.
This crackdown was initiated by the ED’s Shimla sub-regional office on October 28 under Section 17(1) of the Prevention of Money Laundering Act (PMLA), 2002. Authorities confiscated various incriminating documents, digital devices, bank records, and the cash amount during the searches.
Investigations revealed that Atul Sood, a close associate of the scam’s mastermind, Subhash Sharma, traveled to Dubai to meet him. Sood was involved in organizing conferences and other events for Sharma. Despite an FIR being filed in the case, activities related to the fraud continued. The ED arrested Sood during the raids and presented him before a special PMLA court in Shimla, which remanded him in custody until November 5.
Previously, the ED had conducted searches on December 13, 2025, and June 15, 2026, targeting various individuals connected to the fraudulent cryptocurrency scheme, resulting in the seizure of incriminating documents, digital devices, and cash worth ₹1.5 crore.
Several associates of Subhash Sharma, including Hem Raj, Sukdev Thakur, Abhishek Sharma, Milan Garg, and Masoom Juneja, have also been arrested. The ED has filed charges and supplementary charges against them in a special court in Shimla. The investigation began based on FIRs filed by the Himachal Pradesh and Punjab police against Sharma and others.
The ED explained that Sharma and his associates operated an online platform promoting a cryptocurrency-based multi-level marketing (MLM) scheme, enticing investors with promises of high returns on investments in Korvio Coin (KRO). This scheme followed a Ponzi model, using funds from new investors to pay returns to earlier investors.
Digital data recovered during the investigation indicated that over 2.4 million users were affected by the fraud, with transactions exceeding $219 million, resulting in losses of approximately ₹500 crore for investors.
The ED noted that most of the funds raised from new investors were received in cash and distributed to team leaders, ultimately reaching Sharma and his associates, Vijay Kumar Juneja and Masoom Juneja. Additionally, a portion of the funds was allegedly utilized for acquiring real estate, with significant cash payments made at undervalued registered prices.
The ED’s statement indicated that a small fraction of the funds raised from new investors was funneled through various bank accounts, fake firms, and intermediaries. To obscure the origins and movement of these funds, some were partially converted into cryptocurrency.
Subhash Sharma, the alleged mastermind behind the fraudulent scheme, fled to Dubai after defrauding thousands of investors, inflicting severe financial losses. The ED has initiated legal proceedings against him and others involved in the case.
